Netflix (NFLX) - ຮັບລາຍງານຟຣີ shares slumped lower Thursday following a report that suggested the online streaming service isn’t building a big enough audience in its ad-supported tier to satisfy spending from marketing executives.
Digiday reported that Netflix is having to refund some ad spending commitments amid disappointing subscriber gains in its new ad-supported service, which launched earlier this month. Digiday said Netflix has structured the deals on a so-called ‘pay for delivery’ basis, meaning advertisers were effectively guaranteed a certain level of views in order to justify paying for their promotions.
